Lido Finance

Lido Finance | Liquid ETH Staking with Lido | Lido DAO

Lido Finance- The best liquid staking solution for proof-of-stake crypto 

When you invest in cryptocurrency, the only aim you have in your mind is to earn money through it by selling it at a price higher than the one at which you purchased it. But, do you know there is one more way through which you can earn money with your crypto? 

Well, the short answer is through "Staking." 

Yes, it is possible to put your crypto funds to work and earn a passive income through it and the best part is, you don't even have to sell them. But, crypto staking has also taken a step ahead and that became possible only because of the contribution made by Lido Finance

Don't have an idea about it? Don't worry, the following sections will walk you through the complete details of this platform and what you can do to use it. So, if you wish to learn more about staking your assets through Lido Finance, come along with me and give a thorough read to the sections to follow. 

What is Lido Finance?

Came into existence in the year 2020, the Lido Finance platform provides users with liquid staking solutions for those cryptocurrencies that support the Proof-of-Stake consensus mechanism. As you might know that Ethereum is now in the phase of "Merge" and has undergone an upgrade to the Ethereum 2.0 protocol, Lido Finance supports staking on this new version of the platform. It not only allows us to work on the Ethereum blockchain, but also supports staking on other platforms such as Solana, Kusama, Polkadot, Polygon, and more. 

Don't understand much of what I am saying? Well, you can just go through the next section where I will make you understand the whole concept of how it works in the staking world. 

How does Lido Finance work?

Staking is the name of participating in securing a network. Hence, liquid staking services like these are being trusted by a lot of new users and they ultimately stake their crypto assets through such platforms. In return for the same, they are provided with block rewards. But, the traditional Proof-of-stake mechanism comes with several hurdles. Hence, to reduce these hurdles, Lido Finance came into action thus reducing any barriers that might appear when entering the staking solution. 

When you use this platform to stake your crypto assets, your tokens are staked on the Lido blockchain. Here are some of the key takeaways from Lido Finance:

Steps for Lido Liquid Ethereum (ETH) Staking

In order to stake your ETH through the Lido Finance platform, you can perform the following steps: 

Way to Liquid Polygon (MATIC) Staking via Lido 

Similarly, if you are looking for steps on Liquid Polygon (MATIC) Staking, then you can go to the https://lido.fi/ polygon website. Here you can select the "Stake MATIC" option present on the main page of the screen.

When the new screen opens, you can choose the option to connect your wallet with it. If you have already connected your wallet, then you can enter the amount of Polygon in the given form and then follow a few easy steps to complete the staking process. 

Addressing some lido finance issues

Is lido finance not working the way you expect it to be? If that is the case, you must take some measures to get the issue fixed. 

Summing it up: 

When you stake your crypto assets through any platform other than Lido Finance, your assets are locked out for a set period. But, this is not the case with Lido as it is one of the best liquid staking solutions for proof-of-stake crypto. I hope this article has helped you gain comprehensive knowledge about this platform and its usage. 

So, till next time, Happy Staking... 

Frequently Asked Questions- 

As we know that Lido Finance works on the concept of "Distributed Custody", therefore when you lock your funds in smart contracts, there is a fear that this smart contract may get affected by bugs or have vulnerabilities in it that can be easily exploited by a hacker and loss of funds. 

Based on the reviews available on different platforms of the web, the platform Lido Finance has been extensively used for the purpose of staking ETH and earning passive income through it. Once you stake your ETH, the rewards are then applied to the stETH token balance. And you know what the best part is, you are rewarded every day at midnight. 

Whenever traders stake their crypto assets through it, they are provided with some rewards in the form of their earnings. Lido Finance charges you a 10% fee for your earnings. This 10% fee is then shared by the Lido DAO and node operators. On Lido Finance, you can stake different crypto assets including ETH, SOL, DOT, KSM, and MATIC. 

Due to the unexpected and long-term absence of validators, the fear of loss of their staked funds develop in the mind of investors. When a specific validator goes offline for a long, you may eventually lose your funds. So, practicing caution while choosing a validator is a must.